News Releases

    • Abitibi-Consolidated and Bowater complete combination to form AbitibiBowater


          MONTREAL, QC, and GREENVILLE, SC, Oct. 29 /CNW Telbec/ - AbitibiBowater
      Inc. (NYSE: ABH, TSX: ABH) announces that it has completed its previously
      publicized merger of equals of Abitibi-Consolidated Inc. and Bowater
      Incorporated. With pro forma revenues of approximately US$8 billion in 2006,
      AbitibiBowater is the third largest publicly traded paper and forest products
      company in North America and the eighth largest in the world.
          Commencing today, the common stock of AbitibiBowater will trade on the
      New York Stock Exchange and Toronto Stock Exchange under the ticker symbol
      "ABH". AbitibiBowater is a U.S. reporting company, reporting in U.S. GAAP,
      with headquarters and executive offices located in Montréal, Québec.
          The Company expects to achieve annualized synergies of at least
      US$250 million within two years from improved efficiencies in such areas as
      production, selling, general and administrative (SG&A) costs, distribution and
          According to John W. Weaver, Executive Chairman of AbitibiBowater, "By
      combining Abitibi-Consolidated and Bowater, we have created a global leader
      that is well positioned to compete in an increasingly challenging global
      market. We look forward to drawing on the best practices from both
      organizations and on the strengths of a proven management team to deliver
      greater value to our stockholders, customers, employees and other
          "This transaction marks a new and important chapter in our collective
      history," said David J. Paterson, President and Chief Executive Officer of
      AbitibiBowater. "Through this combination, AbitibiBowater will be a more
      dynamic and competitive organization that will create long-term value for our
      stockholders and the communities in which we operate. Our plan to achieve
      US$250 million in annual synergies is just the first step toward this goal."
          As previously announced and as part of the closing of the combination of
      Abitibi-Consolidated and Bowater to form AbitibiBowater, Bowater Canada Inc.,
      an exchangeable share public company subsidiary of Bowater, amended its
      articles in order to, among other matters, change its name to AbitibiBowater
      Canada Inc. and change each of its issued and outstanding exchangeable shares
      for 0.52 of a new exchangeable share. The exchangeable shares, which
      previously traded on the Toronto Stock Exchange under the symbol "BWX", are
      now traded on the Toronto Stock Exchange on a post-consolidation basis under
      the symbol "AXB" and are exchangeable on a one-for-one basis for shares of
      AbitibiBowater common stock.
          Abitibi-Consolidated and Bowater also announced that each company will
      release their respective third quarter 2007 results before the markets open on
      Tuesday, November 6, 2007. Further information regarding the companies'
      earnings calls for analysts, and the manner in which the calls may be
      accessed, will be made available shortly.
          AbitibiBowater produces a wide range of newsprint and commercial printing
      papers, market pulp and wood products. Following the required divestiture
      agreed to with the U.S. Department of Justice, AbitibiBowater will own or
      operate 31 pulp and paper facilities and 35 wood products facilities located
      in the United States, Canada, the United Kingdom and South Korea. Marketing
      its products in more than 80 countries, the Company is among the world's
      largest recyclers of newspapers and magazines, and has more third-party
      certified sustainable forest land than any other company in the world.
          Forward-Looking Statements
          Any statements made regarding the combination between
      Abitibi-Consolidated Inc. and Bowater Incorporated, benefits or synergies of
      the combination, and other statements contained in this news release that are
      not historical fact are forward-looking statements that are based on
      management's beliefs, certain assumptions and current expectations. These
      statements may be identified by the use of forward-looking terminology such as
      the words "expects," "projects," "intends," "believes," "anticipates", "will"
      and other terms with similar meaning indicating possible future events or
      actions or potential impact on the business or stockholders of AbitibiBowater
      Inc. Such statements include, but are not limited to, statements about future
      financial and operating results, AbitibiBowater's plans, objectives,
      expectations and intentions, the markets for AbitibiBowater's products, the
      future development of AbitibiBowater's business, and the contingencies and
      uncertainties to which AbitibiBowater may be subject and other statements that
      are not historical facts. This news release also includes information that has
      not been reviewed by the company's independent auditors. All forward-looking
      statements in this news release are expressly qualified by information
      contained in filings with regulatory authorities.
          The following factors, among others, could cause actual results to differ
      materially from those set forth in the forward-looking statements: the risk
      that Abitibi-Consolidated's and Bowater's businesses will not be integrated
      successfully; the risk that the cost savings and other expected synergies from
      the combination may not be fully realized or may take longer to realize than
      expected; and disruption from the combination making it more difficult to
      maintain relationships with customers, employees or suppliers. Additional
      factors that could cause AbitibiBowater's results to differ materially from
      those described in the forward-looking statements can be found in the periodic
      reports filed by AbitibiBowater with the SEC and the Canadian securities
      regulatory authorities and available at the SEC's internet site
      ( and on SEDAR ( AbitibiBowater does
      not undertake and specifically disclaims, any obligation to update or revise
      any forward-looking information, whether as a result of new information,
      future developments or otherwise.
          /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
          the CNW Photo Network and archived at
          Additional archived images are also available on the CNW Photo Archive
          website at Images are free to accredited
          members of the media/
      For further information:
      For further information: Investors: Duane A. Owens, Vice President and
      Treasurer, (864) 282-9488; Media: Seth Kursman Vice President, Communications
      and Government Affairs, (514) 394-2398,